Transportation has become an essential part of businesses, and fleet management optimizes the entire process. Setting up an in-house team or outsourcing to a fleet management provider allows business to focus on their core task, without having to worry about transportation.
According to fleet management industry trends, the market forecast to 2020 indicates rapid growth in the field, driven by factors such as centralization of fleet sourcing and management, risk and safety factors, decrease in diesel vehicles and an increased focus on mobility management. While Europe and North America prefer fleet leasing, purchasing is more popular in APAC and LATAM.
What is Fleet Management?
Fleet management refers to the overall management of the transportation of a particular company. Most commonly, fleet management involves overseeing road transport vehicles such as cars, vans trucks, and other specialist cars. For companies involved in large-scale shipping of goods, fleet management may also involve supervision of ships, rail cars, and aircraft.
The functions carried by fleet management teams include vehicle financing, vehicle maintenance, tracking, diagnostics, driver management, and fuel management, as well as safety and speed monitoring. They also reduce long-term expenses on transportation by improving the productivity and efficiency of the fleet and ensuring compliance with local government regulations.
- Centralization Of Fleet Sourcing And Management
As businesses expand, their needs for transportation evolve over time, in which case, centralization of fleet sourcing and management plays a key role. By centralization of the fleet management process, costs can be minimized without compromising on efficiency.
- Mobility as a Service (MaaS) Solutions
Employing methods such as ride-sharing and carpool in the form of mobility as a service (MaaS) solutions, fleet management teams can offer transportation as a service, rather than directly providing full vehicles. By this means, the costs can be cut down significantly as the number of full-time vehicles required can be reduced without compromising on transportation needs.
- Telematics Technology
The general concept of telematics involves combining informatics with telecommunications. Telematics has become an important part of fleet management and its use is expected to grow further in the coming years. By means of telematics, the fleet management team can track the location of the vehicle through GPS, speed, idling, harsh driving, fuel consumption, and other engine data. Through the data collected from telematics, fleet managers can optimize vehicle management and service.
- Focus on Risk and Safety
Tired drivers, overworked vehicles and fast speed limits all increase the chances of road accidents, which can be dangerous for the personnel involved and expensive for repairing the vehicle. Fleet management is giving more attention to careful monitoring of drivers and regular servicing of vehicles so as to help prevent accidents.
There are immense opportunities in the fleet management industry, as businesses expand and have more needs for efficient transportation. Globalization and urbanization further increase the need for effective fleet management services, with the demand growing at a rapid pace in developing nations. Growing environmental concerns will require careful management of fleets so as to meet local regulations. Technology advancements in the field of driverless/self-driving vehicles have the potential to further change the fleet management industry.
As the world becomes a global village, transport becomes an important part of all businesses, giving rise to a dedicated fleet management industry to look after the transportation needs of businesses. Fleet management is expected to grow at a rapid pace to 2020, as companies seek to boost transportation efficiencies and lower costs. The rising applications of technology in fleet management are further evolving the market.